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COMBINED REPORT OF THE DIRECTORS
The Boards have pleasure in submitting the annual report
together with the audited consolidated financial statements
of the Trust and of the Company for the year ended
31 December 2016 (the “consolidated financial statements
of the Trust and of the Company”).
The Trustee-Manager Board also presents the audited
financial statements of the Trustee-Manager for the year
ended 31 December 2016.
PRINCIPAL ACTIVITIES
The Trust is a fixed single investment trust, with its activities
being limited to investing in securities and other interests in
the Company.
The principal activity of the Company is investment holding,
whilst the principal activities of the Group are the generation
and supply of electricity in Hong Kong Island and Lamma
Island. Particulars of the Company’s subsidiaries are set out
in note 17 to the consolidated financial statements of the
Trust and of the Company.
The Trustee-Manager, an indirect wholly-owned subsidiary
of Power Assets, has a specific and limited role to administer
the Trust, and is not actively engaged in running the business
managed by the Trust Group.
BUSINESS REVIEW
A review of the business of Trust Group (of which the Group
forms part) during the year and an indication of likely future
developments in the Trust Group’s business are provided in
the Chairman’s Statement on pages 3 to 5, CEO’s Report
on pages 8 to 23, Financial Review on pages 55 to 57 and
Performance Highlights on page 2.
The principal risks and uncertainties facing the Trust
Group and how the Trust Group manages these risks and
uncertainties are described in Risk Management and Risk
Factors on pages 27 to 30.
The Trust Group’s relationships with its key stakeholders,
environmental policies and performance is discussed in the
CEO’s Report on pages 8 to 23, whilst its compliance with
the relevant laws and regulations that have a significant
impact on the Trust Group are included in Risk Factors on
pages 29 and 30 and Combined Corporate Governance
Report on pages 38 to 54.
These review and discussion form part of this Combined
Report of the Directors.
RESULTS
The results for the year ended 31 December 2016 and the
financial position as at that date of the Trust Group and the
Group are set out in the consolidated financial statements of
the Trust and of the Company on pages 67 to 126.
The results for the year ended 31 December 2016 and the
financial position as at that date of the Trustee-Manager are
set out in the financial statements of the Trustee-Manager
on pages 129 to 136.
DISTRIBUTIONS AND DIVIDENDS
Distributable Income
Distributable income and distributable income per Share
Stapled Unit are set out in note 13 to the consolidated
financial statements of the Trust and of the Company.
Distribution per Share Stapled Unit
The Trustee-Manager Board has declared a final distribution
by the Trust of HK20.12 cents (2015: HK20.12 cents) per
Share Stapled Unit for the year ended 31 December 2016,
payable on 19 April 2017 to Holders of Share Stapled Units
whose names appear on the Share Stapled Units Register
on 6 April 2017. This, together with the interim distribution
of HK19.92 cents (2015: HK19.92 cents) per Share Stapled
Unit, brings the total distribution to HK40.04 cents per Share
Stapled Unit for the year ended 31 December 2016 (2015:
HK40.04 cents).
In order to enable the Trust to pay the interim distribution
and the final distribution, the Company Board declared the
payments of a first interim dividend and a second interim
dividend, in respect of each of the Company’s ordinary
shares held by the Trustee-Manager, of HK19.92 cents
(2015: HK19.92 cents) and HK20.12 cents (2015:
HK20.12 cents) respectively for the year ended
31 December 2016.
The Trustee-Manager Board does not recommend the
payment of a dividend for the year ended
31 December 2016.
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HK ELECTRIC INVESTMENTS